Article Image
News Link • Economy - Economics USA

Wall Street tumbles as recession fears hit, Dow Jones down over 3 per cent

• economictimes.indiatimes.com
NEW YORK: US stocks tumbled on Thursday, extending losses for a fourth straight session, as the Federal Reserve's weak outlook for the US economy and disappointing data from China heightened fears about a global recession.

Big banks were the top decliners, a day after Moody's lowered debt ratings for large lenders.

Shares of Citigroup Inc and Morgan Stanley hit a 52-week low at the market's open. Citigroup fell more than 4 percent to $24.25 and Morgan Stanley dipped more than 6 percent to $12.99.

The Select Sector Financial Sector SPDR funds was off more than 3 percent, also a 52-week low.

"A lot of people were hoping for the Fed to say we are close to recession but not really in it and were expecting an aggressive action out of the Fed. The market didn't get this," said James Dailey, portfolio manager of TEAM Asset Strategy Fund in Harrisburg, Pennsylvania.

The market's mood has turned decidedly negative since the Fed statement on Wednesday, which detailed additional stimulus measures but also focused on the weak economy.

Investors are taking a more pessimistic view, and they question the ability of euro zone governments to control the sovereign debt crisis and reverse sluggish growth.

The Dow Jones industrial average fell 355.86 points, or 3.20 percent, at 10,768.98. The Standard & Poor's 500 Index was down 38.51 points, or 3.30 percent, at 1,128.25. The Nasdaq Composite Index was down 79.97 points, or 3.15 percent, at 2,458.22.

1 Comments in Response to

Comment by Powell Gammill
Entered on:
Stocks Nosedive Amid Global Economic Fears

http://www.cnbc.com/id/44624491


Join us on our Social Networks:

 

Share this page with your friends on your favorite social network:


Attorney For Freedom